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Please show or explain how you got the answers If a bond's price is above its par value, its coupon rate will be Select one:

Please show or explain how you got the answers

If a bond's price is above its par value, its coupon rate will be

Select one:

a. less than its yield-to-maturity.

b. greater than its yield-to-maturity.

c. less than its current yield.

d. equal to its yield-to-maturity

A high coupon bond is likely to be called by the issuing firm if

Select one:

a. required yields rise.

b. it has a high call premium.

c. it has a low credit rating.

d. the going rate of interest on bonds decreases.

Consider a twenty-year bond with a 5% coupon that has a yield to maturity of 7%. If all else remains constant, one year from now the price of this bond will be

Select one:

a. the same.

b. higher.

c. lower.

d. cannot be determined.

Suppose a company has a TIE ratio of 0.85. What might you conclude?

Select one:

a. The companys net income will likely be positive.

b. The companys EBIT is larger than its interest expense.

c. The company does not have enough short-term assets to pay for its short-term liabilities coming due.

d. The company has overextended its usage of debt.

Which of the following statements regarding mutual funds is false?

Select one:

a. All profits are dispensed to shareholders in the form of dividends.

b. Expenses associated with advertising and sales are called 12b-1 fees.

c. Profits earned from the sale of assets within the fund are forwarded to shareholders via ordinary income dividend distributions.

d. Most funds offer an option for automatic dividend reinvestment.

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